22 May, 2002 – Horizon Energy Development, a wholly owned subsidiary of National Fuel Gas Company and ACEA S.p.A, the Italian utility serving the city of Rome, announced Tuesday that they have signed a joint development agreement for the construction of a nominal 400 MW combined-cycle natural gas electric generating plant, to be built in the town of Montenero di Bisaccia, Italy in the region of Molise.
As part of the joint development agreement, the partner companies will establish a project company in Italy, of which Horizon and ACEA will each own 50 percent. It is estimated that total project financing requirements will be approximately $180m. Through an offtake arrangement, to be negotiated, ACEA will purchase the entire output of the power plant for 15 years. ACEA will market this power through its power trading company, which was formed to sell energy in Italy.
Horizon and ACEA expect the project to reach financial close during 2003. Construction of the power plant is anticipated to be completed by June 2005 and the plant is expected to be in operation by September 2005.
Italy recently issued a decree expediting the development of new electric generation plants identified as ‘Urgent measures to ensure the security of the national electric system’.
We look forward to the development of this project to help assure Italy’s energy security and meet its growing need for additional power,” said Bruce Hale, Managing Director of Horizon Energy Development BV. “We are pleased to have established this partnership with ACEA, a strong player in Italy’s energy marketplace and an experienced member of its energy industry,” Hale said. I
Horizon engages in international energy projects through investments as the sole or substantial owner of various business entities. Horizon currently maintains a significant presence in the Czech Republic through its subsidiary, United Energy, the third largest energy supplier in that country. Power Consulting Company of London acted as Horizon’s advisor in the development of the project.
ACEAI is primarily engaged in the generation, transmission, distribution and sale of electricity and heat with its activities concentrated mostly in the Rome area. The Company owns and operates five hydroelectric plants and two thermoelectric plants. Additional information about ACEA is available at https://aceaspa.it.
National Fuel is an integrated energy company with $3.5bn in assets comprised of the following six operating segments: Utility, Pipeline and Storage, Exploration and Production, International, Energy Marketing and Timber. Additional information about National Fuel is available at https://nationalfuelgas.com or through its investor information service at 1-800-334-2188.